What is a Contract Breach?
A contract breach occurs when a party holding a contractual obligation deviates from the agreed-upon terms of the contract. There are four primary reasons a breach of contract may occur: The form of the agreement does not matter when it comes to breaches. Whether the contract is written, oral or implied, if one party fails to fulfil their obligation, a contract breach has occurred. When it comes to contract breaches, there are two different types: major and minor . A major, or material, breach of contract occurs when the non-breaching party does not receive the benefit of the bargain. A minor breach, or partial breach, involves the non-breaching party receiving most of the benefit of the bargain, but may not be willing to let the minor breach slide. An anticipatory breach occurs when one party notifies the other of their intent to not perform under the contract. They might be doing this in order to minimize liability. The failure to show up for performance on the agreed-upon date constitutes the breach.
The Value of a Contract Breach Attorney
Hiring an attorney who specializes in contract law allows you to focus on your business operations, while knowing that your breach of contract claim is in good hands. An attorney will handle complex negotiations, settlements and litigation with other businesses or third-party entities. Lawyers understand how to move the settlement process forward and get you compensated for all damages resulting from the breach. When a breach occurs, time is often of the essence. Individuals and corporations alike do not want their business operations to be disrupted for a protracted amount of time. A contract breach attorney understands how to negotiate solutions quickly and effectively, preferably without getting courts involved. In many instances, the negotiation process will bear fruit and allow both parties to save face through a settlement rather than pursuing litigation.
There are many settlements that occur in breach of contract claims, which saves the time, money and resources associated with litigation. However, if a third party does not behave reasonably, your attorney can initiate the litigation process efficiently and effectively. Courts will often side with the innocent party when someone has blatantly and convincingly violated a contract. Your lawyer will explain your options clearly. If you require litigation, your contract breach attorney will be there for you every step of the way. Additionally, if you are the one who could be vulnerable to losing a lawsuit due to your failure to meet the terms of a contract, then your lawyer can work with you to minimize the potential damages you might incur.
When You Need to Hire a Contract Breach Attorney
Depending on the situation, a contract breach attorney can be the best resource for your business. When you believe that another party is in breach of contract substantial enough to cause significant damage to your company, an experienced attorney can listen to your situation and help you find a solution.
When Is Contract Breach Serious Enough to Need an Attorney?
A contract breach isn’t necessarily serious just because someone hasn’t delivered an item right on schedule – businesses often forgive small things like this. However, there are several situations in which intervention from a contract breach attorney may be necessary:
When there is a persistent pattern of problems with one particular vendor or client.
When a breach is causing financial damage to your business.
When awareness of a breach shows that your intellectual property is at risk.
When it becomes impossible to get a timely response when issues are encountered with a client.
When the damage that a breach is causing is too serious to ignore just because it is only "one small issue."
Although a small breach of contract can be inconvenient, provided that the damage can be recovered or fixed, this type of issue is often not enough to warrant legal intervention. One of the toughest parts of deciding whether or not to enlist the services of a contract breach attorney is trying to figure out if the damages can be reasonably handled outside of court. If the opposing party can agree to a settlement or can provide proof that the damages are nonexistent, then it may be a good idea to avoid the court system. However, if there is no possibility of a resolution outside of the legal system, a contract breach attorney is often the only option to determine the way forward.
Hiring the Right Contract Breach Attorney for Your Company
A seasoned contract breach attorney will evaluate your situation and help you understand your options under the law. It is important, however, to hire the lawyer who is right for your specific circumstance. Here are some factors to consider when hiring a contract breach attorney to safeguard your Phoenix business:
Experience
You want to know that your attorney has experience handling business contract violations. You don’t have to hire a lawyer who spends a lot of time in trial court, but you do want one who understands how the legal process works and can assume the role of business lawyer in Phoenix when necessary. In addition, it pays to choose an attorney with extensive transactional experience as well. If your attorney has handled matters from both sides of the aisle (this is not uncommon), he or she will be better equipped to defend you in contract disputes.
Specialization
Law is a broad field. While most contract attorneys can handle fairly simple cases, you do not want to trust your case to someone who lacks the expertise to evaluate the strength of your case or negotiate for your settlement.
Track Record
To what degree has your contract breach attorney prevailed in past cases? Look for reviews online that speak about your lawyer’s skill at defending clients in contract breach cases. Has your lawyer published any articles or handled speaking engagements , perhaps as a part of continuing education for other lawyers? These distinctions add credibility to your lawyer’s background.
Communication Skills
It is important that your business lawyer in Phoenix communicate well with his or her clients. First of all, you need to be informed about the status of your case and the options before you. Second, you need your counsel to be an effective advocate for your interests. Be alert to your lawyer’s communication skills during your first attorneys’ appointment. Is your lawyer an active listener? Do you feel that you are being heard? If the communication skills are lacking even at the outset of your relationship, chances are good they will remain disappointing throughout your case.
A contract breach attorney is instrumental in helping you avoid and recover damages incurred for contract violations. If you have a contract dispute in Phoenix, the experienced lawyers at the business law firm Burch & Cracchiolo, PA offer a free initial consultation to discuss your case.
The Legal Process of a Contract Breach
Typically, the legal proceedings in a contract case will begin with the filing of a complaint. This document must be served on the defendant before they are formally notified that a lawsuit has been filed against them. Note that the service can be performed either by the plaintiff or a third party, and if the defendant resides out of state, the service must be carried out in compliance with the laws of that particular state.
If the complaint has been served and accepted, the first procedural step is known as pleading. The defendant will have a specific number of days to file a formal response known as an "answer" or can instead submit a motion to dismiss the claim. In the latter scenario, if the court rejects the motion to dismiss, the defendant will then have to comply with the complaint within a court-specified time frame.
After the pleading phase, all documents are submitted to the court and all statements of plaintiffs and defendants have been made. This moves the case into discovery and pretrial proceedings. During this initial period, both parties will have a chance to gather relevant documents, interview witnesses, submit discovery demands to the other side and within any related parties, and perform background checks to investigate further.
The discovery period enables investigators and attorneys to determine the best possible strategy for success in the courtroom. At this point, settlement talks may also begin. If no settlement can be achieved, then the case will move to trial. The basic steps of a trial include an opening statement from both the plaintiff’s and defendant’s attorney, the introduction of evidence and calling of witnesses, closing argument statements and jury instruction before a verdict is delivered.
Anticipating Costs with a Contract Breach Attorney
When it comes to hiring a contract breach attorney, you’ll want to consider several different areas before bringing on legal assistance. Contract breach attorneys typically offer initial consultations, where you can meet with them and explain the details of your case. This way, they can help you determine the next steps in your lawsuit or groundbreaking transaction. However, many corporate legal professionals charge fees for an initial consultation. You’ll also need to consider hourly fees and other charges.
Consultation Fees: Some attorneys charge a consultation fee to meet with you and discuss your case. If you’re planning to retain the attorney, they may waive this fee. Make sure to carefully read the contract you sign , so that you understand all the costs up front.
Hourly Fees: While hourly fees for contract breach attorneys vary from one firm to another, you should be prepared to spend a few hundred dollars per hour. The most experienced attorneys may even charge upwards of $1000 per hour.
Contingency Fees: Some contract breach lawyers will take your case on contingency. This means that if you win the case against the other party, the lawyer will negotiate a small percentage of any money won. For example, you could have the contractor agree to waive the $5000 bill, owing to the breach their company made, in exchange for a percentage of the damage award. If the contractor or merchant refuses to waive the fee, at least you won’t be on the hook for bringing the case to court.